futuredo32

Senior Member
15+ Year Member
Apr 8, 2003
1,510
213
Michigan
Status
Attending Physician
I may max out the maximum amount my final semester that I can borrow from the stafford/gov't loans before I graduate. Exactly what do the private loan companies look for to determine how good your credit is? ie, do they look at if your phone/electric bills are late?, is one or two times being thirty days over due on a credit card horrible? And is it bad to have high credit card debt if I pay at least the minimum amount each month?
Thanks, in advance for any advice you may be able to offer.:)
 

eldarion3141

Member
7+ Year Member
15+ Year Member
Mar 4, 2004
83
0
Pa
Visit site
Status
futuredo32 said:
I may max out the maximum amount my final semester that I can borrow from the stafford/gov't loans before I graduate. Exactly what do the private loan companies look for to determine how good your credit is? ie, do they look at if your phone/electric bills are late?, is one or two times being thirty days over due on a credit card horrible? And is it bad to have high credit card debt if I pay at least the minimum amount each month?
Thanks, in advance for any advice you may be able to offer.:)

I have had a credit card since i was 18, paid my tution with it (and paid the balance off every month) loan companies probably look at your credit report and your FICO score in particular. Although being late once or twice isn't horrible, it is lowering your FICO score (which is out of a possible 850 points) and as far as that credit card debt, i would try and get that paid off every month. I have only had a balance on my credit card once, and i crunched the numbers and it would take me 6 months and paying the credit card company an extra $300 in interest just making the minimum payments.

I believe that having credit cards that you don't use, or having a high rate of debt on your credit cards are something that the loan companies look at, and they might consider you a higher risk, thus giving you a higher interest rate, so in the end you might have to pay more.

Try bankrate.com, and contact your undergrad financial aide office or some other online sources about dealing with credit.
Experian.com, transunion.com, and equifax.com are the sites where you can buy a credit report.
www.freecreditreport.com is a site where you can get your credit report for free. If this site does not work, then i know that you are supposed to get your dredit report for free at least once a year.

hopes this helps